BLM COLORADO PARTICIPATING AREAS

JurisdictionUnited States
Federal Onshore Oil & Gas Pooling & Unitization - part 1
(Oct 2014)

CHAPTER 6D
BLM COLORADO PARTICIPATING AREAS

Pat Gallagher
U.S. Bureau of Land Management, Colorado State Office
Lakewood, Colorado

[Page 6D-1]

PAT GALLAGHER is a senior Petroleum Engineer with the Bureau of Land Management, Colorado State Office in Lakewood, Colorado, and served as the Inspection and Enforcement lead for Colorado for 23 years until June 2014. Prior to that, he was a BLM field engineer in Bakersfield, CA, and a production, reservoir, and drilling engineer for UNOCAL in central California. He has a Bachelor of Science degree from the Colorado School of Mines and is a registered professional engineer.

BLM Colorado Participating Areas

Presenter

Pat Gallagher, P.E.

Petroleum Engineer

Reservoir Management Group

Peter Cowan Scott Sorensen Judy Armstrong
Petroleum Engineer Geologist Land Law Examiner
picowan@blm.gov ssorensen@blm.gov j1armstr@blm.gov
(303) 239-3939 (303) 239-3928 (303) 239-3761

Standard Circle Size: Gas Wells

Well Depth of Producing Formation (feet) Area of Participating Area Circle (acres)
2,000-2,500 80
2,500-3,500 160
3,500-4,500 320
4,500-5,500 480
5,500+ 640

Include all 40 acre tracts cut 50% or more by the circle

[Page 6D-2]

Standard Circle Size: Oil Wells

Well Depth of Producing Formation (feet) Area of Participating Area Circle (acres)
2,000-2,500 40
2,500-5,000 80
5,000+ 160

Include all 10 acre tracts cut 50% or more by the circle

Consolidated and Revised Participating Areas

A consolidated or revised participating area will be formed for a new unit well, if the well is 4 radii or less from the well that forms the adjacent participating areas (i.e. the same size circle will overlap the circles formed around the two wells).

For the following example, please make the assumption that the wells are completed in the same formation and are unit paying wells.

[Page 6D-3]

Operator Bob drills his first well in the Example Unit, the EU #1

Based on the EU #1, the Initial Mesaverde PA "A" was formed

[Page 6D-4]

Operator Bob drills his second well, the EU #2

Since the EU #2 is less then 4 radii from the EU #1, the EU #2 revises PA "A"

[Page 6D-5]

The EU #2 well combines with PA "A" and forms Revised Mesaverde PA "A"

The third well, EU #3, is more then 4 radii from the other wells

[Page 6D-6]

Therefore, the EU #3 well forms the Initial Mesaverde PA "B"

...

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